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Big Tech companies operating globally often have intellectual property and other assets located in countries with low corporate tax rates.

Big Tech tax burdens are just 60% of global average

Inequality and COVID spending spur rethink of how to grab bigger slice of corporate profit

TOMOSHIZU KAWASE, Nikkei corporate tax editor, and MAKI SAGAMI and TOKIO MURAKAMI, Nikkei staff writers | North America

TOKYO -- The average tax burden ratio for top American IT companies, collectively known as the "Big Four"-- Google, Apple, Facebook and Amazon -- is about 15%, or around 60% of the average among more than 50,000 large companies worldwide, a recent Nikkei analysis finds.

The existing corporate income tax system is ill adapted to a digitized economy, as it cannot fully account for intangible assets. Competitive tax cutting among nations has come to a head, due in part to the fiscal expansion undertaken to deal with the coronavirus pandemic. Policymakers around the world now see an increasing need for global tax rules.

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